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Great leaders create great businesses. Without leadership, the ship that is your small business will aimlessly circle and eventually run out of power or run aground. Every business must be tackled differently. One of the small private businesses is dairy shop whereby the business is able to operate with one level of leadership. This means that communication between the owner and the customers are efficient. Being able to be a single owner greatly reduces wasted energy for all those involved. Private sector organisations will focus on their share price and financial measurements if they are listed on stock exchange. In this way, the management is able to add value to the shareholders investment. The leader of the company, which is listed on the stock exchange, accepts that the board or council sets the strategy, although he or she will have significant input.
For majority of small business leader, their basic focus on their lives is to do with building self-confidence. Confidence is a shared quality but it may be one of the main skills a successful business owner needs. Small businesses need to develop strategic behaviour and various leadership skills and the business owner may not be the best person suited to do it. They can receive assistance from consultants, sector bodies, mentors, and government agencies (if they plan to be exporters). Moreover, they are taking risks, so they are responsible for success of their fledgling business. Growth can also be a problem for small private businesses as when the business expands and requires complex systems to sustain it, there may be a crisis of management, and will require a different kind of leadership to take the business to next phase as the founder may become obsolete.
Small private businesses look at leadership as being either authoritarian, participative or laizzez faire. In small private business the vision and change is higher compared to large public business. Small businesses are always different from large public businesses in terms of access to resources, financial, technological and human. In large public businesses there is positive attitude to risk and change including leaders tolerate mistakes, creates change, willing to take risks, not afraid of challenges and learn from mistakes whereas in small private businesses the leader also advocate change and learns from mistakes. The two categories for leaders of large businesses that are not attributed to the leaders of small businesses is charisma along with concepts such as passion, inspiration and loyalty. Big public businesses are admired for success. The leader characteristics are more important in large public businesses than in small private companies to lead to performance. Small business leaders are less visionary and less welcoming compared to large public businesses. The personal characteristics of small private businesses are self-awareness, enthusiasm and determination whereas in large public business the leader is not afraid to use power or strength, broad knowledge based, opportunist and energetic. In large public businesses the leader is able to motivate and engage teamwork and co-operation whereas in small private businesses the leader gives individualized attention, ability to motivate and is interested in employees.
Profit versus not- for - profit business.
Non-profit organisations need innovative, courageous and powerful leadership to build trust, team building and manage diversity. But to succeed non-profit leaders need skills and need a clear understanding of the very specific nature of non-profit organisations. For profit businesses the primary measure of performance is for profit whereas for not-for-profit businesses have no universal measure of performance. In addition, profit organisations pay all their employees and for not -for-profit businesses some of the workers are unpaid volunteers. Leaders for the profit firms strive to connect the organisations activities and offering to the benefits that they provide to clients. Their goal is to create an environment that results in high performance team. A non-profit organisation has a different set of stakeholders having input into the formation of strategy. For example, a child charity answering to a board of trustees, those who provide donations, and even parents meeting the needs of the specific group of children it is responsible for. Social responsibility is the leader's main strategy. They act to benefit their client in other ways than solely profit. The drivers of strategy are crucial. The concept of added value applies to all organisations, but leaders recognize that this is the kind of value (whether purely financial, financial and social, or mainly social) must be tailored to the scope of business. Non-profit organisation leaders do make a profit but it is used for the operation of the organisation.
For profit organisations the leader will plan, organise and control the business to make profits. In profit organisations through profits the leaders can offer better products, lower prices, more jobs, higher wages, higher income or capital growth to invest. Leaders working in non-profit organisations need the same skills as their counterparts in for profit businesses. Non-profit leaders are usually dependent on donations. For-profit companies the leaders have a simple way to measure how they're doing relative to previous years and relative to their competitors: the bottom line is whether they look at revenue or various profit calculations, financial measures are typically straightforward - and they allow direct comparisons with other companies. In contrast with the for-profit sector, non-profit (and public sector) leaders usually achieve more if they work collaboratively with other interested parties. These can include other nonprofits, government organisations, or even commercial businesses. For example, medical charities regularly work with universities and pharmaceutical companies. Because nonprofits leaders often have the mission of contributing to the "common good" for their particular area, it usually doesn't matter to them whether they do this on their own or with others as long as they achieve their goal. The nature of the non-profit environment requires some specialized managerial skills, in addition to general leadership abilities. These special skills include fundraising and developing successful grant applications. The leader should work in a continually changing set of informal partnerships. This includes understanding how to influence external organizations. The leader for non-profit firm should work in a continually changing set of informal partnerships.
Discuss leadership in relation to social responsibility.
The concept of corporate social responsibility is intended to provide each business with a far greater ability to create sustainable development. This can help to provide ongoing benefits for the business and its stakeholders, regardless of the size of the business. The business can become more competitive once it begins to create and follow guidelines to enforce the concept of corporate social responsibility within the company and its surrounding community. The greater the sustainability of a business's developments, the more successful it can become. The attraction of corporate social responsibility for many businesses is that it can help to increase sustainability without creating negative effects.
Ethical behavior then is one component of a social responsible organization. If the organization or leader strives for social responsibility, they will be driven to act more and more ethically toward all stakeholders. Likewise, an ethical leader or organization will become more socially responsible as they consider making decisions through an ethical lens.
There are many factors within general business practices that are altering to ensure that every person benefits from the continued functioning of the company. Previously many businesses have subscribed to practices that may have had negative effects on their stakeholders. This is now changing as the realization sets in of the true importance of the different stakeholders in any particular business. There are many different manners in which a company can implement corporate social responsibility measures for the benefit of all concerned. The manner in which each different company implements the changes will be dependant on what aspects of the company could be considered as having produced negative effects.
The type of business that implements changes to come in line with accepted corporate social responsibility guidelines will also determine what sort of changes will need to be made. The size of the investment that will be required to ensure that the business conforms to acceptable guidelines will also be affected by the type of business it is. The resources that are expended for this purpose do need to be viewed as an investment rather than an unnecessary expense since the positive results can more than repay the investment.
Leadership is one of the most pressing issues and one of the least understood concepts in the corporate world. The history of leadership encompasses through several paradigm shifts and voluminous body of knowledge. As a universal activity, leadership is fundamental for effective organizational and social functioning. The very nature of leadership is its influencing process and its resultant outcomes. In today's world, business organisation needs effective leadership in order for them to continue to be successful. Without this, organization cannot function correctly or achieve company goals and visions. Stakeholders are any constituencies in the organization's external environment that are affected by the organization's decisions and actions.
In a broad sense such groups may include owners, employees, customers, the government, in general. Typically the various responsibilities can be enumerated below:
Committing funds in the best possible manner
Ensuring fair rate of return
Fair and honest reporting of business operations from time to time
Recognize social needs of workers and provide adequate participation in matters effecting their life
Fair and reasonable rates of pay
Creating healthy work environment
Provide goods of quality at reasonable prices
Avoid deceitful and false, exaggerated advertisement, publicity gimmicks etc
Should not indulge in anti-social activities like hoarding etc
Follow fair trade policies and practices
Pay taxes to the government honestly
Obey the laws
Discourage unhealthy practices like bribing, obtain licences to kill competition
Elimination of poverty and provision of quality health care
Preservation of the environment by reducing the level of pollution
Provide equal employment opportunities
Provide sufficient number of jobs and career opportunities and facilities to all members of the society
conduct educational program viz : combat drug abuse; blood donation camps, consumer awareness camps etc
Leaders in today's organization have the difficult job of trying to meet the demands of employees, stockholders, government, customers, the public and other groups. Social responsibility is concerned with how leaders deal with the issues and problem confronting society. Leaders should keep in mind that besides producing and distributing goods and services in return for profits should also identify the groups that are influenced by its action and what their expectations and also the environmental impacts it may have.
To describe how the organisation contributes to the community (beyond its core business) and how the intended outcomes of contribution link to the organisation's purpose and values. This includes awareness of the implications of its decisions on the communities in which it operates as well as its impact on the natural environment; and how the organisation supports a clean, safe, fair and prosperous society
In this context, "environmental and community contribution" does not refer to the normal business relationships with customers, shareholders or suppliers. "Community" might include geographical region, professional groupings, industry bodies and/or the public at large.
Just to cite an example: a restricted number of parking spaces available for staff to use. Allocations can be based on justifiable reasons. Staffs participating in a car pool are more likely to receive a parking permit on campus than individuals.
The 1984 gas leak in Bhopal, India, was a terrible tragedy that understandably continues to evoke strong emotions even 24 years later. In the wake of the release, Union Carbide Corporation worked diligently to provide immediate and continuing aid to the victims and set up a process to resolve their claims. All the claims arising out of the release were settled 19 years ago at the explicit direction ofÂ and with the approval of the Supreme Court of India.
Since the time of the incident, the chemical industry has worked to voluntarily develop and implement strict safety and environmental standards to help ensure that an incident of this type never occurs again.